The E.W. Scripps Company (SSP) Wells Fargo's 9th Annual TMT Summit summary

M&A and strategic direction

• Recent discussions with Sinclair about a potential merger ended without agreement, with complexity around ownership, capital structure, and governance cited as key obstacles.

• Significant synergies, estimated at $300 million, are possible in large-scale local broadcast consolidation, with value creation for shareholders a primary focus.

• The board remains committed to transformational M&A, leveraging the current deregulatory environment, and has executed several smaller buy-sell-swap deals.

• Preferred equity held by Berkshire is viewed as a flexible tool in future deals, with strong management relationships supporting collaborative opportunities.

Advertising and revenue outlook

• Q3 and Q4 local advertising performance was strong, driven by sales execution, sports strategy, and political crowd-out benefits.

• Momentum in sales and sports is expected to carry into the first half of next year, though political crowd-out may create headwinds in the second half.

• The company has a favorable political advertising footprint for 2026, with several competitive races expected to drive cash flow and support deleveraging.

Distribution and retransmission

• 70% of the subscriber base is up for renewal next year, with expectations for continued price increases and modest net growth in distribution revenue.

• Affiliate expenses are expected to decline in future renewal cycles, reversing a long-standing trend of increases.

• Negotiations are shifting toward more variable contracts, aligning expenses with revenue variability and cord-cutting trends.